New Delhi: In its wish list to the Union Finance Ministry ahead of the budget, the Indian aviation industry has sought an extension on the exemption of tax payment on leased aircraft.
Air India Chairman and the Federation of Indian Airlines (FIA) head V Thulasidas, on behalf of the industry players, said the tax exemption on leasing of aircraft should be extended beyond the present period of March 31.
"We have sought an extension of this relief. Just because we are now buying aircraft outright, it does not mean that we will not take aircraft on lease in the future," as quoted by PTI, Thulasidas said in Mumbai.
"It is important to bring down costs for airlines and render them more competitive," he said, adding this tax did not exist abroad, making leasing cheaper there and disadvantaging Indian aviation players.
Afflicted by low yields, excess capacity and high costs, aviation players are also looking for succour on tax on aviation turbine fuel (ATF).
"Tax on ATF is high internationally but in India, it is even higher. We have requested for a lowering of rate here," Thulasidas said.
The other important issue relates to levy of service tax on first and business classes as also general service tax.
Fiscal support on these issues will go a long way in enabling players to become more competitive and "we hope the Finance Minister will consider our requests sympathetically", the Air India chairman added.
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